ᐅ Architect, contract under HOAI 2013 – refusal to perform services
Created on: 15 May 2019 10:00
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stephan.l
Hello! I am new to this forum and could use some help. I have a contract with an architect based on HOAI 2013 covering phases 1 to 8. His fee is VERY high at 18.5% of the total costs. He is also the construction manager. The architect was already 72 years old when hired and recommended himself based on a successful project for a neighbor.
The architect has already invoiced 75% of the total fee as progress payments, but so far not even the basement of the house (basement, ground floor, sleeping floor) is finished (the contractor’s share of costs so far is 24% of the total construction costs). Other trades have barely been (documentedly) worked on, the schedule is missing, and the detailed execution plans for the upper floors are incomplete. On-site, he shows up at most once a month for one hour, which has led to misunderstandings in the construction process due to lack of supervision.
Now the architect has issued another invoice, which would bring the total paid to 86% of the entire fee. I explained the situation to him and referred to a progress payment appropriate to the construction progress, asking him to please submit the invoice at a later date.
In response, the architect started quarrelling intensely with the contractor and stated that he cannot continue working due to the contractor’s insufficient quality and that he would not continue until his fully justified claim is paid. Construction is at a standstill because the plans for the ground floor are missing.
My question is: can the architect demand arbitrarily high progress payments under HOAI without corresponding progress and service delivery?
Thank you very much if anyone has experience with this.
The architect has already invoiced 75% of the total fee as progress payments, but so far not even the basement of the house (basement, ground floor, sleeping floor) is finished (the contractor’s share of costs so far is 24% of the total construction costs). Other trades have barely been (documentedly) worked on, the schedule is missing, and the detailed execution plans for the upper floors are incomplete. On-site, he shows up at most once a month for one hour, which has led to misunderstandings in the construction process due to lack of supervision.
Now the architect has issued another invoice, which would bring the total paid to 86% of the entire fee. I explained the situation to him and referred to a progress payment appropriate to the construction progress, asking him to please submit the invoice at a later date.
In response, the architect started quarrelling intensely with the contractor and stated that he cannot continue working due to the contractor’s insufficient quality and that he would not continue until his fully justified claim is paid. Construction is at a standstill because the plans for the ground floor are missing.
My question is: can the architect demand arbitrarily high progress payments under HOAI without corresponding progress and service delivery?
Thank you very much if anyone has experience with this.
I still have a few invoices to settle as well, can I send them to you!?
No sorry, I’ve had enough, I can’t take you seriously.
This is exactly what you deserve, you brought this on yourself, now you have to pay the price. Some people only learn these things the hard way.
You promised grandpa double the fee without informing anyone and then just paid every invoice knowingly, against all reason. Congratulations!
I’m out of here, have a good weekend.
No sorry, I’ve had enough, I can’t take you seriously.
This is exactly what you deserve, you brought this on yourself, now you have to pay the price. Some people only learn these things the hard way.
You promised grandpa double the fee without informing anyone and then just paid every invoice knowingly, against all reason. Congratulations!
I’m out of here, have a good weekend.
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sichtbeton8217 May 2019 07:23I take back what I said about being rational and objective. I know that when you hire someone, you expect everything to be carried out properly—especially when you pay what amounts to "pharmacy prices" according to HOAI (the official fee schedule), and then even more on top of that. But unfortunately, you can hardly rely on that anymore, especially the more urban the environment becomes.
After the second unexcused absence, the fee agreement should have been terminated.
It also seems like everything is somehow going wrong, reminiscent of Hotzenplotz. The construction costs appear to be completely inflated, and the fees seem too high. Somehow, it all feels unbelievable. But this might give you, or your lawyer, good grounds to argue a violation of good business practices.
I also can’t make sense of the relationship between your invoice amounts and the respective service phases. It doesn’t seem to align with the percentage breakdowns in the HOAI:
1. Invoice, 10/2016, €6,200
“Planning services provided so far, preliminary design”
2. Architect’s invoice, 11/2016, €10,000
“Design planning, planning approval”
Service phase 1 (Basic evaluation) 2%
Service phase 2 (Preliminary design) 7%
Service phase 3 (Design planning) 15%
Service phase 4 (Planning approval) for buildings 3%, for interiors 2%
Invoice 1 corresponds to a total fee of either €88,500 (if it only covers phase 2 at 7%) or €68,900 (if it covers both phases 1 and 2 at 9%).
Invoice 2 corresponds to a total fee of either €55,500 (if it covers phases 3 and 4 at 18%).
After the second unexcused absence, the fee agreement should have been terminated.
It also seems like everything is somehow going wrong, reminiscent of Hotzenplotz. The construction costs appear to be completely inflated, and the fees seem too high. Somehow, it all feels unbelievable. But this might give you, or your lawyer, good grounds to argue a violation of good business practices.
I also can’t make sense of the relationship between your invoice amounts and the respective service phases. It doesn’t seem to align with the percentage breakdowns in the HOAI:
1. Invoice, 10/2016, €6,200
“Planning services provided so far, preliminary design”
2. Architect’s invoice, 11/2016, €10,000
“Design planning, planning approval”
Service phase 1 (Basic evaluation) 2%
Service phase 2 (Preliminary design) 7%
Service phase 3 (Design planning) 15%
Service phase 4 (Planning approval) for buildings 3%, for interiors 2%
Invoice 1 corresponds to a total fee of either €88,500 (if it only covers phase 2 at 7%) or €68,900 (if it covers both phases 1 and 2 at 9%).
Invoice 2 corresponds to a total fee of either €55,500 (if it covers phases 3 and 4 at 18%).
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stephan.l17 May 2019 09:29@sichtbeton82, based on the positive experience with my neighbor, I initially had complete trust. Another architect was also involved, who simply said, "You are only allowed to repaint here, but nothing else." Compared to that, I now have a building permit / planning permission that was barely granted. This initially set my willingness to pay. However, when the architect started presenting increasingly vague invoices, I asked him to calculate and limit his fees precisely according to HOAI. The costs seem quite high, but in return, I expected to receive a turnkey house without having to worry about much. Since I am very busy professionally, that was exactly what I wanted. It was only after construction was stopped that I woke up to the situation. In this respect, I suppose I have to accept what Zaba12 said above.
But thanks again for this breakdown. Now that he is refusing to provide services because I politely informed him I would have the invoice reviewed first, I have a strong reason to terminate the contract. The tip about violation of good faith / fair dealing also sounds promising.
But thanks again for this breakdown. Now that he is refusing to provide services because I politely informed him I would have the invoice reviewed first, I have a strong reason to terminate the contract. The tip about violation of good faith / fair dealing also sounds promising.
hampshire schrieb:
What nonsense!I have quite a bit of experience working with people over 70 in construction. Do you as well? With few exceptions, they live in their own world, one that the digital age hasn't entered.
No offense to their experience and knowledge, but practical implementation just doesn't work anymore.
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sichtbeton8217 May 2019 10:06It’s good that you’re responding so calmly. There’s no point in dwelling on what has already happened. The damage is done. I completely understand that you started out with the utmost trust. In my opinion, a personal recommendation is a great solution. It’s also perfectly reasonable that you relied on their performance. But as a warning to others who are about to make similar decisions: always double-check everything, no matter how secure or trustworthy it seems.
I also understand that work, children, elderly parents, or distance often limit your ability to conduct thorough checks. That’s what forums like this are for—to question and reflect on your own approach.
I’m keeping my fingers crossed that you’ll come out of this situation cleanly. As for the comment about breaching good conduct, don’t take it too seriously—that was a bit exaggerated.
I also understand that work, children, elderly parents, or distance often limit your ability to conduct thorough checks. That’s what forums like this are for—to question and reflect on your own approach.
I’m keeping my fingers crossed that you’ll come out of this situation cleanly. As for the comment about breaching good conduct, don’t take it too seriously—that was a bit exaggerated.
Stephan.l schrieb:
Considering that, I now have a building permit that was hardly easy to obtain.Negotiations with the relevant authorities regarding the approval feasibility of your construction project are essentially a basic service included in project phase 4. If these negotiations turn out to be particularly extensive or difficult in individual cases, this should be compensated separately as a "special service." However, this must also be itemized and billed separately and should not be used to justify an otherwise excessive overall fee across all project phases.
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